Citigroup has agreed to pay Fannie Mae a whopping $968 million in an effort to settle potential claims on 3.7 million home loans, HousingWire reported. The agreement, which specifically applies to claims of breaches of warranty and representation, covers first residential mortgages that were sold to Fannie between 2000 and 2012.
“As we work to deepen and enhance financial relationships with our clients, we will continue to focus on the production of high-quality mortgage loans,” CitiMortgage CEO Jane Fraser told HousingWire.
But the agreement does not release the bank from liability on less than 12,000 loans originated during the 12-year span with a performance guaranty or under special credit enhancement programs, according to a Citigroup statement.
“Today’s agreement resolves legacy repurchase issues, compensates taxpayers for losses and allows Fannie Mae and Citi to move forward and strengthen our business relationship,” Bradley Lerman, executive vice president of general counsel at Fannie Mae, told HousingWire. “We continue to focus on making strong progress in resolving repurchase requests with other lenders, and remain committed to helping people to buy, refinance or rent a home.” [HousingWire] —Zachary Kussin